Ratings on Chicago, Ill.-based Boeing Co. are supported by its very strong position in defense and military space sectors which have moderately attractive growth prospects, its position as one of two global producers of large commercial aircraft with generally favorable long-term fundamentals, efficient operations, and expected good overall financial performance, especially solid cash flow generation and liquidity. Concerns include currently weak demand for commercial airplanes, the need to improve reputation and execution with the U.S. government on several important defense programs, and sizable unfunded postretirement liabilities. The Sept. 11, 2001, attacks, a sluggish global economy in the past two years, the Iraq war, and SARS have had a severe impact on commercial aviation, leading to a decline in air travel,
